- Origin Agritech Ltd’s (NASDAQ:SEED) shares are up Monday morning following a deal with Shihezi city in Xinjiang to expand NEC corn production.
- The company’s majority-owned JV will be granted 33,000 acre (200,000 mu) of farmland for growing NEC corn.
- Origin’s minority partner in the JV is a regional farming and feedstock company. The JV partner will finance the contract growing of NEC corn and constructing a grain processing facility that will dry and silo the corn.
- Origin Agritech will sell the NEC corn seed to the joint venture and provide planting support services.
- The JV has planted 30,000 mu for this season and plans to expand planting to the whole 200,000 mu for the 2024 season.
- Origin expects the deal to add $8 million to revenue in 2023, increasing to $55 million in 2024.
- Price Action: SEED shares are trading higher by 14.15% at $7.02 on the last check Monday.
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